KPMG is warning finance directors that more than two-thirds of organisations will be hit with financial penalties following the introduction of the Carbon Reduction Commitment (CRC).
With just 20 days to go before the start of the CRC, the Big Four Firm is warning finance directors they risk severe financial penaltities and reputational damage, if their organisation fails to comply.
Under the new rues the vast majority of organisations with annual electricity bills exceeding £500,000 have to report and pay for their predicted carbon emissions. They are entered into a league table and given a rebate, dependent on where they are placed in the table.
KPMG believes the biggest risk to companies is incorrect reporting of their carbon emissions, from which they could incur substantial fines and severe reputational damage.
“There are still signs, even at this late stage, that many of the scheme’s participants are not yet fully prepared for the CRC,” said Vincent Neate, UK head of sustainability at KPMG.
“The penalties for late or inaccurate data submission mean organisations could find themselves incurring unexpected costs and their efforts to establish green credentials could be severely set back,” he added.